Fortegra Secures $150 Million in Capital to Support Growth
Rhea-AI Summary
Fortegra, a subsidiary of Tiptree Inc. (NASDAQ:TIPT), has successfully completed a $150 million issuance of 9.25% Fixed Rate Resetting Junior Subordinated Notes due 2064. The notes will be junior, subordinated, and unsecured obligations guaranteed by certain Fortegra subsidiaries. The capital raise aims to support profitable growth, enhance specialty insurance offerings, expand warranty and consumer products businesses, and diversify risk portfolio. The notes were offered under Rule 144A and Regulation S to eligible U.S. purchasers and non-U.S. persons.
Positive
- Secured $150 million in new capital through notes issuance
- Strategic financing to support business expansion and growth initiatives
- Strengthening capital position for enhanced insurance offerings
Negative
- High interest rate of 9.25% on the notes
- Long-term debt obligation extending to 2064
- Subordinated nature of the notes increases risk for note holders
News Market Reaction 1 Alert
On the day this news was published, TIPT gained 1.76%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Junior subordinated notes issuance comes in anticipation of growing Fortegra's operations
"This strategic financing enables Fortegra to drive profitable growth and optimally manage risk for our partners and policyholders across the US and
This investment will allow Fortegra to:
- Deepen partner relationships through tailored insurance solutions;
- Enhance risk management capabilities to protect partners' and policyholders' interests; and
- Boost profitability through targeted growth initiatives.
"This transaction demonstrates our commitment to delivering long-term value to our partners, policyholders and shareholders," added Peña. "We're well-positioned to capitalize on market opportunities while maintaining a strong focus on risk management, business growth, and operational excellence."
The Notes were offered pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") to eligible purchasers in the United States and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The Notes and the guarantees thereof have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release is neither an offer to sell nor solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Fortegra
For more than 45 years, Fortegra, via its subsidiaries, has underwritten risk management solutions that help people and businesses succeed in the face of uncertainty. As a multinational specialty insurer whose insurance subsidiaries have an A.M. Best Financial Strength Rating of A- (Excellent) and an A.M. Best Financial Size Category of 'X', we offer a diverse set of admitted and excess and surplus lines insurance products and warranty solutions. For more information: www.fortegra.com
Contact:
media@fortegra.com
View original content:https://www.prnewswire.com/news-releases/fortegra-secures-150-million-in-capital-to-support-growth-302299426.html
SOURCE Fortegra
FAQ
What is the interest rate and maturity of Fortegra's new notes offering (TIPT)?
How much capital did Fortegra (TIPT) raise in their November 2023 notes offering?
What will Fortegra use the $150 million capital raise for (TIPT)?
